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ACERS, the Los Angeles City Employees' Retirement System, has made its first private credit real estate commitment with a $25m investment in Mavik Capital Management's US opportunistic fund. The pension fund placed the capital into the Mavik Real Estate Special Opportunities VS2 fund as part of its 2025 plan for private credit investments, which aims to commit up to $700m.
The fund seeks to raise $515m and will target stressed, distressed, and special situation real estate investments in the US middle market. Investments will range from $10m to $50m. LACERS' long-term goal is to allocate 20-40% of its private credit portfolio to core real estate and real asset credit investments.
The pension fund has set a 5.75% allocation for private credit, aiming for an 8-10% net return benchmarked against the Credit Suisse Leveraged Loan Index plus 200 basis points.
